Dollar dives to 2-week low ahead of Jerome Powell's speech

The US dollar fell on Tuesday, to deepen its losses for the second straight day, and hit a 2-week low, due to slowing demand amid improved market sentiment with US President Donald Trump's health improving as he left hospital after COVID-19 treatment, and growing hopes about the new fiscal stimulus in the US., ahead of an important speech by Federal Reserve Chairman Jerome Powell. 

 

The dollar index fell 0.1% to the lowest level since September 21 at 93.34 points, after opening at 93.44, and hit an intraday-high of 93.54.

 

The index lost 0.4% yesterday, due to improved risk-appetite after US President Trump's health improved.

 

US President Donald Trump left the hospital and returned to the White House after COVID-19 treatment, which reduced the state of political uncertainty in the US.

 

Talks continued between US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin in attempts to reach an agreement on the new Covid-19 relief bill.

 

At 14:40 GMT, Federal Reserve Chairman Jerome Powell will deliver a speech at the National Association of Business Economics annual meeting about the US economic outlook, which is expected to provide key insight and new cues about the future of the US monetary policy.


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Posted By laraparker : 06 October, 2020
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The Australian dollar rose on Wednesday, buoyed by improved investors' risk appetite in September's last session.   Investors absorbed the results of the first US election debate between the Republican candidate Donald Trump and his Democratic rival Joe Biden.   Australia's Building Approval Index fell 1.6% during past month, missing forecasts of a rise by 0.1%.   The final reading of the US GDP decreased 31.4% in the second quarter, better than forecasts of -31.7%.   This came amid the continuous efforts to curb the spread of the coronavirus to support global economies to return to their growth path.   As of 17:57 GMT, AUD/USD rose 0.5% to 0.7171, after hitting a high of 0.7175 and a low of 0.71.

The US dollar rose on Friday, to maintain above the 1-week low hit yesterday, to head for the first gain in 5 days, shining as the best alternative investment amid risk aversion after US President Donald Trump announced testing positive for the Coronavirus, ahead of the US jobs report for September.   The dollar index rose over 0.3% to 94.03 points, after it opened at 93.73 points, and hit an intraday low of 93.71 points.   The index lost 0.1% yesterday, posting its fourth straight daily loss, and hit a 1-week low of 93.53 points.    Demand for the US dollar was renewed, as most global stocks fell on risk aversion, after the President of the United States announced he tested positive for Covid-19.   US President Donald Trump tweeted that he and the first lady tested positive for Covid-19 and began quarantine and recovery process immediately   Investors are anticipating the release of key data later today, as the non-farm employment change reading will be released at 12:30 GMT, with forecasts of the creation of 0.900 million new jobs in September vs. 1.371 million jobs in August, and the unemployment rate is expected to drop to 8.2% from 8.4%, while the average hourly earnings is expected to rise by 0.5% vs. 0.4%.


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